Nvidia didnt tell investors enough about effects of crypto mining on its business, SEC says
Summary
A sign is posted in front of the Nvidia headquarters on May 10, 2018 in Santa Clara, California. Nvidia will pay $5.5 million as part of a settlement with the SEC that it did not properly inform investors about how cryptocurrency miners were stoking demand for its graphics cards. Nvidia failed to disclose how cryptocurrency mining drove growth in the second and third fiscal quarters of 2018, which took place in 2017, the SEC said in a filing. The settlement represents the end to a saga in which Nvidia, best known for making graphics cards for gaming, found itself with a surprise revenue boost from cryptocurrency miners which later declined to become immaterial. Nvidias gaming category, which is how the company reports those sales, rose 52% on an annual basis in the second quarter of its 2018 fiscal year (which ended June 30, 2017), and by 25% in the following quarter — but Nvidia failed to disclose cryptocurrencys effect on that growth, the SEC says.
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